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On Wednesday, FTX Financial Group released its annual filing with the Securities and Exchange Commission (SEC), revealing that the company had spent over $6 million on a yacht for former co-CEO Sam Trabucco.
The filing said the purchase was made in December 2020 for use by Mr. Trabucco, who recently stepped down from his role at the company to pursue other opportunities. It said that the yacht, which Trabucco was allowed to keep and use for personal reasons, was necessary for “corporate purposes,” such as “entertaining clients, potential customers and other business associates.”
The news has sparked outrage among some shareholders, who have questioned why the company spent such a large sum on a yacht for the former CEO. They argue that the money could have been better spent on other investments that would have benefited the company more, such as in research and development.
FTX CEO Jon Jacobs defended the purchase, saying that it was necessary for Trabucco to conduct business while entertaining clients in a “safe, comfortable and private environment.” He also said that the yacht was not purely for Trabucco’s personal use, and that it could be used by other executives in the future.
Some experts have suggested that the purchase of the yacht could be seen as an “excessive compensation scheme” for Trabucco, and one that could potentially be seen as a conflict of interest. They argue that the huge outlay of funds could be seen as a way for Trabucco to benefit from his former position, and that the purchase should have been put to a shareholder vote before it was made.
FTX has not yet commented further on the controversy, but it remains to be seen whether the company will address the matter and take action to ensure transparency and integrity for its shareholders.